The annual inflation rate in Canada fell to 1.4 percent in January 2019 from 2.0 percent in the previous month and below market expectations of 1.5 percent. It was the lowest inflation rate since October 2017, mainly due to cost of energy and services. Inflation Rate in Canada averaged 3.14 percent from 1915 until 2019, reaching an all time high of 21.60 percent in June of 1920 and a record low of -17.80 percent in June of 1921.

Inflation Rate in Canada is expected to be 2.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Canada to stand at 2.10 in 12 months time. In the long-term, the Canada Inflation Rate is projected to trend around 2.20 percent in 2020, according to our econometric models.

Canada Inflation Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-11-23 01:30 PM Inflation Rate YoY 2.4% 2.2% 2.2% 2.4%
2018-12-19 01:30 PM Inflation Rate YoY 1.7% 2.4% 1.8% 2.4%
2019-01-18 01:30 PM Inflation Rate YoY 2% 1.7% 1.7% 1.7%
2019-02-27 01:30 PM Inflation Rate YoY 1.4% 2% 1.5% 1.8%
2019-03-22 12:30 PM Inflation Rate YoY 1.4% 1.4% 1.5%
2019-04-17 12:30 PM Inflation Rate YoY 1.3%
2019-05-15 12:30 PM Inflation Rate YoY



Canada Annual Inflation Rate at 15-Month Low in January

The annual inflation rate in Canada fell to 1.4 percent in January 2019 from 2.0 percent in the previous month and below market expectations of 1.5 percent. It was the lowest inflation rate since October 2017, mainly due to cost of energy as gasoline prices declined amid an oversupply in the US.

Year-on-year, prices of transportation dropped (0.4 percent compared to 1.7 percent in December), mostly due to a decrease in cost of gasoline (-14.2 percent) amid an oversupply in the US. Also, prices eased for food (2.8 percent compared to 2.9 percent); household operations, furnishings and equipment (0.7 percent compared to 2.1 percent); recreation, education and reading (1.3 percent compared to 1.5 percent); and health and personal care (0.6 percent compared to 1.0 percent). On the other hand, cost increased further for shelter (2.4 percent compared to 2.2 percent); clothing and footwear (0.5 percent compared to 0.2 percent) and  alcoholic beverages and tobacco products (4.5 percent compared to 4.4 percent). 

Regarding special aggregates of the CPI, prices for durable goods fell 0.1 percent, after decreasing 0.8 percent in December. Additionally, the price of energy products went down 6.9 percent, following a 3.7 percent decrease in the prior month, namely gasoline (-14.2 percent, fuel oil and other fuels (-3.3 percent), and natural gas (-2.3 percent). Also, cost of services slowed to 2.7 percent from 3.5 percent in December.

On a monthly basis, consumer prices increased 0.1 percent, after a 0.1 percent decline in the previous month and compared with market forecasts of a 0.2 percent gain.

The BoC's annual core inflation, which excludes volatile items, rose to 1.5 percent, easing from a 1.7 percent increase in December.


Statistics Canada | Stefanie Moya | stefanie.moya@tradingeconomics.com
2/27/2019 1:58:25 PM


News

Canada Annual Inflation Rate Rises to 2% in December
The annual inflation rate in Canada rose to 2.0 percent in December 2018 from 1.7 percent in the previous month. Figures came above market expectations of 1.7 percent, mainly driven by higher prices of various services, including air transportation, telephone services and travel tours.
Published on 2019-01-18

Canada Annual Inflation Rate at 10-Month Low in November
The annual inflation rate in Canada fell to 1.7 percent in November 2018 from 2.4 percent in the previous month and below market expectations of 1.8 percent. It was the lowest inflation rate since January, mainly due to a slowdown in cost of transportation as gasoline prices declined.
Published on 2018-12-19

Canada Inflation Rate Above Forecasts
Canada's annual inflation rose to 2.4 percent in October from 2.2 percent in the previous month and above market expectations of 2.2 percent. Prices of transportation and shelter led the increase. It was the ninth consecutive month that inflation has exceeded the Bank of Canada's 2 percent target.
Published on 2018-11-23

Canada Inflation Rate Falls to 2.2% in September
The inflation rate in Canada fell to 2.2 percent in September of 2018 from 2.8 percent in August and well below market expectations of 2.7 percent. It was the lowest inflation rate since May, as the transportation index eased, still it remained the largest contributor to the year-over-year increase in consumer prices.
Published on 2018-10-19



Canada Prices Last Previous Highest Lowest Unit
Inflation Rate 1.40 2.00 21.60 -17.80 percent [+]
Inflation Rate Mom 0.10 -0.10 2.60 -1.30 percent [+]
Consumer Price Index CPI 133.60 133.40 134.30 12.10 Index Points [+]
Core Consumer Prices 132.80 132.60 132.80 61.70 Index Points [+]
Core Inflation Rate 1.50 1.70 5.40 0.00 percent [+]
GDP Deflator 107.70 108.60 108.60 11.80 Index Points [+]
Producer Prices 116.70 117.10 119.70 15.60 Index Points [+]
Producer Prices Change 1.00 2.00 21.10 -7.20 percent [+]
Export Prices 106.70 110.90 113.50 59.50 Index Points [+]
Import Prices 122.10 120.20 8964.00 73.00 Index Points [+]
Food Inflation 2.80 2.90 20.18 -7.14 percent [+]
CPI Housing Utilities 143.00 142.30 143.00 39.10 Index Points [+]
CPI Transportation 136.60 138.00 142.00 10.90 Index Points [+]


Canada Inflation Rate

In Canada, the most important categories in the CPI basket are Shelter (27.5 percent of the total weight) and Transportation (19.3 percent). Food accounts for 16.1 percent; Household Operations, Furnishings and Equipment for 11.8 percent; Recreation, Education and Reading for 11.8 percent; Clothing and Footwear for 5.7 percent; Health and Personal Care for 5 percent; Alcoholic Beverages and Tobacco Products for the remaining 3 percent. The CPI basket is reviewed every four years on the basis of household surveys. The current weights are based on spending patterns in 2009. This page provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Inflation Rate - actual data, historical chart and calendar of releases - was last updated on March of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.40 2.00 21.60 -17.80 1915 - 2019 percent Monthly
2002=100




Country Last Previous
Argentina 50.70 Feb/19
Australia 1.80 Dec/18
Brazil 3.89 Feb/19
Canada 1.40 Jan/19
China 1.50 Feb/19
Euro Area 1.50 Feb/19
France 1.30 Feb/19
Germany 1.50 Feb/19
India 2.57 Feb/19
Indonesia 2.57 Feb/19
Italy 1.00 Feb/19
Japan 0.20 Feb/19
Mexico 3.94 Feb/19
Netherlands 2.60 Feb/19
Russia 5.20 Feb/19
Saudi Arabia -2.20 Feb/19
Singapore 0.40 Jan/19
South Africa 4.10 Feb/19
South Korea 0.50 Feb/19
Spain 1.10 Feb/19
Switzerland 0.60 Feb/19
Turkey 19.67 Feb/19
United Kingdom 1.90 Feb/19
United States 1.50 Feb/19


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